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Labor Ministry: Since the beginning of the year, the status of about 1.4 million self-employed citizens has been updated

by August 28, 2018 Market

The Minister of Labor and Social Protection of Population Madina Abylkassymova reported on the implementation of the Roadmap for the formalization and involvement of the informally employed population in the country’s economy today at a meeting of the Government of the Republic of Kazakhstan chaired by Prime Minister Bakytzhan Sagintayev.

In pursuance of the instruction of the Head of State, the Ministry together with central and local executive bodies implements the Roadmap for the formalization and involvement of the informally employed population in the country’s economy.

Since the beginning of the year, out of 2.7 million people who were not in state databases, the status of 1.385 million people has been updated to date.

Firstly, 548 400 workers signed labor contracts, mandatory pension contributions began to be received. 9.3 thousand domestic workers, 13 thousand entrepreneurs officially registered their activities.

Secondly, 84 thousand people were registered as recipients of social payments, 19 thousand – recipients of targeted social assistance, 29 thousand registered their pregnancy.

Thirdly, the statuses of housewives, students, departed, adult schoolchildren and other categories of citizens who did not have a status were updated.

Within the framework of the implementation of the Roadmap for the formalization and involvement of the informally employed population in the country’s economy, the National and regional headquarters for formalization are actively working, regional road maps have been approved.

To date, 92 700 people are involved in the Program of Productive Employment from among the target population. Including 62 thousand people placed in permanent jobs, 12 000 were directed to short-term training courses, 8000 placed in social workplaces, 3400 people directed to youth practice, and 12 400 directed to public work.

In general, during the reporting period, new systemic measures were taken at the central and local levels to update the status of citizens. Thus, in order to maximize the coverage of the updating of the status of citizens, new update channels were developed. Hot lines have been created in every region where working citizens can report on the facts of compulsion to receive wages “in envelopes” and failures to make mandatory pension contributions.

New categories of statuses have been created in the information database, such as: housewives, recipients of targeted social assistance, persons caring for a child under three years old, pregnant women working under a civil contract, working in foreign enterprises, working at home without a work contract, labor migrants.

Detailed plans have been developed for local executive bodies to formalize citizens’ personal subsidiary plots, informally employed employees, register people as job seekers and unemployed, and unregistered self-employed entrepreneurs. This allowed determining in detail the statuses, to break down large categories for a more effective and individual approach.

In general, there are four main categories of citizens with out of date statuses. These are hired workers, self-employed on personal basis, employed on a personal subsidiary farm and unregistered unemployed.

Within the framework of detailed plans developed, systemic measures are applied to legalize the activities of each category. In particular, with regards to hired employees, further work is carried out on the successful promotion Conclude an employment contract, following which over 7.5 thousand employers have legalized labor relations with their employees having concluded more than 30 thousand employment contracts.

With regards to the self-employed, measures to promote employment have been developed and are being implemented with the establishment of specific targets and constant monitoring. The number of self-employed people working at personal subsidiary farms is broken down by districts and systemic measures have been developed to formalize and promote employment under several areas of the AIC state program (microcrediting, legalization, development of agricultural cooperatives). With regards to unemployed, detailed plans have been developed for local executive bodies to register and provide employment assistance.

In addition, legislative measures are taken with regards to monitoring and formalization. A draft law “On Amendments and Additions to Some Legislative Acts of the Republic of Kazakhstan on the Formalization of Employment of the Population” has been drafted and submitted to the Government, within the framework of which the following measures are proposed:

– Systemic measures to legalize the activities of the informal workers by introducing a single cumulative payment.

– The single definition of employed person and independent worker, as well as categories relating to the employed population.

– Unification of the categories of payers in the laws on social insurance, compulsory social health insurance and pensions.

It is noted that to date, in order to update the status of citizens, fundamentally new channels have been developed. If earlier this was done by door-to-door visits and the results were manually entered into the information system, now it happens automatically when visiting the e-government portal, PSCs, the Kazakhtelecom service portal or through the Single contact center of 1414. After servicing the citizen, the information is automatically submitted to the information system for the registration of citizens’ status.

In addition, work is underway to develop additional channels for updating the statuses, which will also include daily automatic data transfer. The update will be launched within the framework of the Kundelik information system, medical facilities where employees of these institutions through IIN will report the absence of status and immediately update it on the spot or send it to the e-government portal

Also, work is underway with second-tier banks and mobile telecoms operators to update the status of citizens when they use their services. In order to automatically update the status of citizens, work was carried out on the inter-departmental integration of information systems, today most systems are integrated. Integration according to the plan will be completed by the end of the year. All the necessary preparatory work is carried out as planned.

Heads of a number of regions reported on the current situation in the regions and the measures taken to formalize the status of self-employed. Thus, Deputy Akim of Atyrau region S. Shapkenov informed that out of 54 thousand persons with an out of date status, 22.4 thousand were identified in the databases. Work continues.

Akim of East Kazakhstan region D. Akhmetov noted that 41.4% or 78.2 thousand people were identified in the databases according to the results of the work carried out in the region. Until the end of the year it is planned to employ about 12 thousand people. The employment plan was executed at 80.3%. The issue is being constantly monitored by the Akimat.

According to A. Kulginov, Akim of the West Kazakhstan region, in the region 41.1% or 37.4 thousand people were identified in the databases (at the beginning of the year – 90.9 thousand people with an out of date status). Of these, over 17 000 have begun making mandatory pension contributions.

The Akim of the Turkestan region Zh. Tuimebayev, in turn, reported that the statuses of 626 thousand people are subject to updating in the region. To date, 70% or 436 thousand of them have been updated. A concrete work plan for unemployed citizens has been adopted. It is planned that 65 000 unproductive and unemployed citizens will be supported in the framework of the Program for Productive Employment and Mass Entrepreneurship. To date, 18 300 citizens with an updated status have received employment assistance.

Akim of Almaty B. Baybek noted that since the beginning of the year the status of 101.5 thousand people has been updated in the city. Among them, 32 thousand unregistered unemployed officially formalized their status. The number of unproductive workers decreased by 50 thousand or 41%. In total, the status of 348 thousand people has been updated. To strengthen the work, the city’s PSC’s were involved in the process, where during the service of visitors the status of each of them is determined. In the bazaars and public canteens, raids are conducted to determine the official place of work of people. As part of the employment program, 21 000 people are provided with jobs.

According to the Akim of Astana A. Issekeshev, the status of 45 thousand people was updated in the capital.

Source: Government of the Republic of Kazakhstan